Ethereum, the second-largest cryptocurrency in terms of market capitalization, once soared to remarkable heights, achieving an impressive all-time market cap of $489.17 billion on November 10, 2021. But the tides have shifted since then. Following a drastic downturn in 2022, the digital asset now trades at around $1,650, approximately one-third of its value just 22 months ago.
Santiment, a platform offering on-chain and social metrics for cryptocurrencies, recently shared a Twitter post providing insights about the ongoing development activity in the ETH market.
🎢 #Ethereum's market capitalization has undoubtedly been a rollercoaster, like most of #crypto. But are its metrics pointing to any particular concerning signs? Nope. Our latest insight looks at $ETH's rising development activity and plenty more. 👇https://t.co/NSLfp2t0go pic.twitter.com/D5vwHvourV
— Santiment (@santimentfeed) August 29, 2023
Last year, the crypto sphere watched with bated breath as Ethereum prepared for a major update, commonly called the merge. This upgrade was anticipated to address scalability issues and excessive energy consumption, and in that regard, it delivered. However, this success did not translate into a sustained price surge for the asset. Ethereum’s inability to break free from its current price range has led to a waning trader interest, especially when juxtaposed against other top-tier crypto assets.
More concerningly, data indicates that Ethereum whales—those holding between 10 and 10,000 ETH—have reduced their holdings. Accumulation of Ethereum by these significant stakeholders spiked at the end of last year, but a sharp selloff ensued, especially when prices reached an approximately one-year high of around $2,120. This selloff has lasted for about four months, and although the reduction in their holdings isn’t necessarily a death knell for Ethereum, it is certainly a sign to watch closely.
The asset has psychological support around the $1,500 mark, which could be a potential turning point for market sentiment. Should prices dip to this level, increased trading volumes are anticipated, indicating the possibility of renewed interest in the asset.
Today’s Ethereum price analysis reveals a strong market trend, with bullish indications dominating. The cryptocurrency is presently trading at $1,646, up 0.48% in 24 hours, reflecting a positive market mood. The bulls have grabbed control of the market and appear to be set to drive the Ethereum price even higher.
The last few hours of trading have been rather encouraging for the bulls, with daily trade volume exceeding $4.70 million, a more than 51.74 percent rise over yesterday. This means that purchasing pressure is high, and market sentiment is growing more positive. The cryptocurrency has a market cap of $198 billion and a total circulation supply of 120,217,159.
In summary, Ethereum faces a series of hurdles, including a decline in network activity and investor disinterest from larger stakeholders. The next few months could be pivotal in determining whether the asset could regain its footing in the volatile crypto market.
